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companies, banks, of course it should close the door. Provide assistance to its credit, is only a waste of social resources, resulting in credit markets deformity. From the perspective of society as a whole, much less directly to the employees of these enterprises provide social security and more cost-effective.Through the above analysis, it is easy to come to a conclusion that we are talking about small and micro enterprise loans, the loan should be mainly refers to the second class and thircheap cat boots onlined class inferior general corporate businesses hard. The third class of business we should put it in itself excluded from credit, financing difficulties of its existence itself is reasonable. The so-called lack of bank credit effective demand means lower credit demand that is first class and second class quality enterprises, secure credit object is valid credit needs in their eyes, while the second category with three companies are inferior irrelevant, therefore, the foregoing policy transmission failures will exist.Second, the cost of credit for small and micro paradox instructions can not cover high-risk high interest rates can not be accomplished by this benign credit cycle.These three types of enterprise financing difficulty increases, the cost of obtaining funds also increased, resulting in more costly enterprise the more unacceptable to accept high interest rates torture. In the mean probability, the mortality rate of these three companies will gradually increase with rising interest rates. SAIC data show that about 50%, which is still on the rise over the past few years, the economy within five years of mortality data of small and micro enterprises. The second class and third class enterprise mortality is much higher than 50%, but it is precisely the latter two companies have to bear higher, their unbearable lending rate, which is the paradox of small micro-credit costs .Financial institution if you want the profitability of small and micro-enterprise credit, you must ensure that the selection of the relative safety of their own a little better from the second class business enterprise in order to escape the remaining dangers. In a market environment, in terms of profits and security, there must be more than half of small and micro enterprises to which banks are not providing loans of. This data is not accurate, but also some subjective judgment, but in fact it is an objective reality. Financial institutions with high
 
interest rates if you want to cover high-risk, the result will inevitably lead to more and more to their credit target third class of inferior enterprises transfer risk multiplier effect, not a little more interest can be resolved.Bank identification security tool is the interest rate and credit requirements of small and micro enterprises. Simply put, the bank credit requirements of the enterprise, the more credit interest rates will be lower, because there will always be competition in the game due to the behavior of the inter-bank companies and banks. So, what level of interest rates set at a standard, generally means that you choose which category in which these three companies or which part.Loan officers often work in the long run virtually follow a standard - "safety margin rate", this argument no one made it clear that it is an objective reality. "Safety marginal rate" means in a certain period, under certain financial environment, to ensure that financial institutions in the capital preferred credit object relative safety of the premise, while maintaining a reasonable interest rate and profit. From a macro considerations, in the "safety margin rate" range loans, non-performing rate is controllable. Which along with changes in the economic and financial situation and constantly adjust, but most of the time close to the industry average social return on investment, far below the average private financing rates. It is about the average cost of financing between general business acat boots salebout the second category, on the left of this interest is first class and second class business enterprise before 50%, its second-class enterprises in the secondary right is 50% and the third category business.But in the credit work hard to do so accurate, because the quality of small and micro enterprises resolution is an extremely difficult job, companies are constantly changing in the development process. Interest rate is a litmus test, but can not solve the problem fundamentally, it requires financial institutions to have a very good, reflecting the degree of support agile air control. In macroeconomic upward, gradually increasing market liquidity situation, "safety margin rate" would be an appropriate increase in the macroeconomic downturn, market liquidity is tight when the "safety margin rate" will be correspondingly reduced. Due to the huge banking institutions, and has been pursuing unilateral credit scale growth, it can not be done in time-trial style and standard switching signal. Many of the big banks choose to do only the first part of the first class and second class enterprise companies, and small banks prefer to do the


second class of enterprises, especially enterprises in the latter part of the second category, but once the economic downturn, small banks if too late adjust credit structure, adverse rates will quickly engulf its previous high profits and losses are formed. Private financial institution if you want to survive, they can only take advantage of its flexibility to survive in a narrow space, which is why these agencies generally can not expand, because once on the scale it is easy death.Since the second and third class companies must provide long-term credit assistance from the outside, so this fragile ecosystem can easily lead to a crash. China's economy continued to cover up years of rapid development of this rule. Until 2008, when the death of a great wave of small and micro enterprises is a normal reaction to such ecosystems, then the formation of a strong stimulus a lot of liquidity, but also makes the continuation of danger. Even today, the real economy continues to hover at the bottom of the consecutive 31-month PPI downside is already a large area to make this crash, the short term is difficult to be reversed.Said the country's banking industry is profiteering is actually a joke. More than 60% of credit funds to invest in the government and state-owned enterprises of various types of platforms, this is purely endorsement by government credit left and right of the game, forming a bank book huge profits, the bank has actually turned into another financial, liquidity credit funds already been kidnapped, the book business profits mean  Short-term high-yield 30% less than the formation of small micro-enterprise loans, long term economic development is bound to be the bottom of the cycle of erosion, now reflected in all aspects of the situation have been able to fully explain the problem. The larger the total amount, the higher the interest rate banks will suffer greater losstimberland boots aues, high-yield high-risk coverage can only be a dream.Third, financial institutions, business loans for the second class, bringing the high and low social economic efficiency, the developed countries on how to resolve this contradiction Our country is still developing, trapped in the technological level, lack of innovative capacity and many other factors, enterprises